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Snap (SNAP) Gains But Lags Market: What You Should Know

Zacks Equity Research

Snap (SNAP) closed the most recent trading day at $11.97, moving +0.59% from the previous trading session. This change lagged the S&P 500's 0.66% gain on the day. Elsewhere, the Dow gained 1.03%, while the tech-heavy Nasdaq added 0.46%.

Coming into today, shares of the company behind Snapchat had gained 5.5% in the past month. In that same time, the Computer and Technology sector gained 5.08%, while the S&P 500 gained 3.97%.

Investors will be hoping for strength from SNAP as it approaches its next earnings release, which is expected to be April 23, 2019. On that day, SNAP is projected to report earnings of -$0.12 per share, which would represent year-over-year growth of 29.41%. Meanwhile, our latest consensus estimate is calling for revenue of $306.32 million, up 32.8% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$0.29 per share and revenue of $1.57 billion, which would represent changes of +38.3% and +32.58%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for SNAP. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. SNAP is currently a Zacks Rank #3 (Hold).

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 54, putting it in the top 22% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow SNAP in the coming trading sessions, be sure to utilize Zacks.com.


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